N.J. sues Sussex County gas station for alleged price gouging after Hurricane Irene

Google MapsA Google Maps street view of the Lukoil gas station in Branchville. The state is suing the station for allegedly gouging its gas prices directly following Hurricane Irene.

TRENTON — A Sussex County gas station accused of raising its prices as much as 17 percent in the wake of Tropical Storm Irene in August now faces a lawsuit filed by the state Division of Consumer Affairs.

The division filed the suit on Wednesday against the company that owns the Lukoil station on Route 206 in Branchville. It alleges the station, owned by Thakur Gas LLC, overcharged 488 customers on Aug. 29, the day after the storm battered New Jersey.

According to state law, increases cannot be in excess of 10 percent of the prices charged during normal business before a state of emergency is declared.

On Aug. 24, the day before a state of emergency was declared by Gov. Chris Christie, the Lukoil station was charging $3.39 for a gallon of regular gasoline, $3.59 for plus and $3.69 for premium.

But the state says that on Aug. 29, the day after the storm, the station began charging $3.99 for regular, $4.19 for plus and $4.29 for premium.

"Taking advantage of those recovering from devastating disasters is despicable conduct," Attorney General Paula Dow said. "The alleged price gouging committed by this gas station took hard-earned money from storm victims who bought fuel to power generators, chainsaws, and other equipment."

The lawsuit, which was filed in Superior Court in Sussex County, is the first related to price gouging after Hurricane Irene. The station faces civil penalties up to $10,000 for the first sale and up to $20,000 for each subsequent 487 purchases.

Thomas Calcagni, the director of the state Division of Consumer Affairs, called the alleged overcharging "so abhorrent."

"New Jersey will not tolerate profiteering at the expense of our citizens’ suffering," Calcagni said. "And those who respond to natural disasters with greed and guile, will find themselves facing the full force of this division’s authority."

An employee at the gas station hung up the telephone today when asked for a comment, and subsequent calls went unanswered.

Consumers who say they have been cheated or scammed by a business, or suspect other forms of consumer abuse can file a complaint with the State Division of Consumer Affairs by visiting its website, www.NJConsumerAffairs.gov, or by calling (800) 242-5846 (toll free within New Jersey ) or (973) 504-6200.